this of the views entertained and expressed by this Government upon the proposal embraced in your lordship's note of November 30, or else this Government has labored under an equally serious error as to what was intended by Sir William Ouseley's mission. It is under this impression, and in order to prevent two great nations from failing in their attempts to adjust an important controversy from a mere question of form, or a mere misunderstanding of each other's views, that I have entered into this extended narrative. It is of no small consequence, either to the United States or Great Britain, that these Central American controversies between the two countries should be forever closed.

On some points of them, and I have been led to hope on the general policy which ought to apply to the whole Isthmian region, they have reached a common ground of agreement.

The neutrality of the interoceanic routes and their freedom from the superior and controlling influence of any one Government, the principles upon which the Mosquito Protectorate may be arranged, alike with justice to the sovereignty of Nicaragua and the Indian tribes, the surrender of the Bay Islands under certain stipulations for the benefit of trade and the protection of their British occupants, and the definition of the boundaries of the British Belize-about all these points there is no apparent disagreement, except as to the conditions which shall be annexed to the Bay Islands' surrender, and as to the limits which shall be fixed to the settlements of the Belize. Is it possible that, if approached in a spirit of conciliation and good feeling, these two points of difference are not susceptible of a friendly adjustment? To believe this would be to underestimate the importance of the adjustment, and the intelligent appreciation of this importance which must be entertained by both nations.

What the United States want in Central America, next to the happiness of its people, is the security and neutrality of the interoceanic routes which lead through it. This is equally the desire of Great Britain, of France, and of the whole commercial world. If the principles and policy of the Clayton-Bulwer treaty are carried into effect this object is accomplished. When, therefore, Lord Malmesbury invites new overtures from this Government upon the idea that it has rejected the proposal embraced in Sir William Ouseley's mission for an adjustment of the Central American questions by separate treaties with Honduras, Nicaragua, and Guatemala, upon terms substantially according with the general tenor of the American interpretation of the treaty, I have to reply that this very adjustment is all that the President ever desired, and that instead of having rejected that proposal he had expressed his cordial acceptance of it so far as he understood it, and had anticipated from it the most gratifying consequences. Nothing now remains for me but to inquire of your lordship whether the overtures contained in your lordship's note of November 30 are to be considered as withdrawn by Her Majesty's Government, or whether the good results expected in the beginning from Sir William Ouseley's mission may not yet be happily accomplished.

I have, &c..

LEWIS CASS.

No. 3.]

[Inclosure No. 9-4.]

Mr. Cass to Mr. Dimitry.

DEPARTMENT OF STATE, Washington, September 22, 1859. SIR: In the memorandum accompanying the instructions you received, dated the 31st ultimo, a brief review was given of our relations with Great Britain, arising out of the Clayton-Bulwer treaty. and the general course indicated which it was thought expedient you should pursue. At that time we had not been furnished with a copy of the Ouseley-Zeledon treaty, and did not therefore know precisely what terms had been offered by the British plenipotentiary to Nicaragua, though we knew that these were not entirely satisfactory to that Republic, and that much delay had been the consequence. which was accompanied with danger of a failure of the negotiations. Since then we have received from Mr. Runnells, our consul at San Juan del Sur, a copy of the proposed treaty, which was communicated to him by Mr. Zeledon, with the expression of a wish that the Government of the United States would offer any suggestions to that of Nicaragua in relation to the adjustment of the Mosquito question. intimating at the same time that no definitive action should be taken till our views were received. The specific objections to the British project were not, however, made known to us.

Since your departure the British Government has again given us such assurances as to their desire to terminate these Nicaraguan difficulties by a just and satisfactory arrangement with that Republic, and in conformity with the principles which had been approved by this Government, that I indulge the confident expectation that the present effort will be successful and future difficulties be prevented.

You will express to the minister of foreign affairs our gratification at the confidence exhibited toward the United States, and the assurance that our best efforts shall be devoted to a termination of the existing difficulties between Great Britain and Nicaragua upon terms honorable and just to both parties.

You are at liberty also to submit to Mr. Zeledon a copy of such portions of this letter as you may consider expedient, that the views of the United States may be fully made known to the Nicaraguan Government, and you will embrace all favorable opportunity in conversation of impressing upon the minister of foreign affairs the importance of dealing with this whole subject in a spirit of justice and moderation, and of meeting with corresponding feelings the friendly sentiments avowed by the British Government. It is not less desirable that you should cultivate the best relations with the British minister, and should also explain candidly to him the objects of your Government and the conciliatory course you are pursuing.

When it was found difficult for the Government of the United States and that of Great Britain to conclude a satisfactory treaty for the arrangement of the various subjects growing out of the Clayton-Bulwer treaty, the British Government proposed to make separate treaties with the several States of Central America interested in the adjustment of these matters. To this proposition this Government assented, with the understanding that the terms should, in their general purport, be in conformity with the principles which this Government had approved,

*:15 cad been fully discussed between us and the Government it Great Emrain.

I have ambily examined the proposed treaty offered by the British Berto Narigua, a copy of which accompanies this dispatch, and vocrpared it with that part of the amended Dallas-Clarendon at win weites to Nicaraguan affairs, and I find that, with one or 12. - Ceptas, they are substantially the same. The Dallas-Clarendon they in some of its Nicaraguan provisions was modified by the Senste, and in this modified form was submitted for the approbation of the Beernment. That approbation was withheld, not on account the etanges made by the Senate in this part of the treaty, but on nt of provisions contained in the same instrument, which had relate to the Bay Islands. You will find herewith a copy of the Dia-Clarendon treaty, and you will find in parallel columns the same ith the changes proposed by the Senate.

The British Government assured us that none of these changes were atsereptable to it as to lead it to refuse its notification, and in May, 1857. Lord Napier presented for joint action the project of a treaty containing precisely the arrangements and stipulations as approved by the Senate. We have a right, therefore, to expect that this moditied treaty should now be offered to the Nicaraguan Government instead of the treaty in its original form, as appears to have been proposed by Sir William Ousley. There is no reason to suppose that the Govern ment of Her Britannic Majesty, having signified their acceptance of the Senate modifications to the Dallas-Clarendon treaty, in all that relates to Nicaragua and the Mosquito question, will now interpose any objection to the conclusion of a similar convention between their minister in Central America and the Nicaraguan Government. You will communicate these views unreservedly to the Nicaraguan Government, and -hould the offer made to it be of the character just indicated, as this Government can not doubt it will be, you will, on the part of the United States, advise that it be promptly accepted. You will, also, make known your course to the British minister in Nicaragua,

Im am, &c..

LEWIS CASS,

Memorandum for Mr. Dimitry, to accompany general instructions of August 31, 1839,

You are aware that difficulties growing out of the Clayton-Bulwer treaty have arisen between this country and Great Britain.

These concern Central America, and are owing, as the United States contend, to the palpable disregard by Great Britain of the words of that treaty, and the substitution of a construction entirely inconsistent with them, and which would give to Great Britain advantages in that quarter to which this country would not accede,

After much delay and prolonged discussion the British Government proposed to adopt substantially the construction we contended for, and to carry out the treaty in that spirit. To this the United States assented, and a conventional arrangement was negotiated for that purpose. The points principally at issue were-

1. The Mosquito protectorate.

2. The establishment of the southwestern boundary of the Belize settlement.

3. The condition of Ruatan and the other Bay Islands,

These questions were satisfactorily settled in a convention which received ratification by the proper authority of both Governments, but the measure ultimately failed in consequence of their disagreement upon another question.

After this the British Government proposed to form treaties with the Central American States interested in these points, and to adjust the various matters with them upon the basis which had been approved by the United States, and which would leave to

No. 3.]

[Inclosure No. 9-4.]

Mr. Cass to Mr. Dimitry.

DEPARTMENT OF STATE, Washington, September 22, 1859. SIR: In the memorandum accompanying the instructions you received, dated the 31st ultimo, a brief review was given of our relations with Great Britain, arising out of the Clayton-Bulwer treaty, and the general course indicated which it was thought expedient you should pursue. At that time we had not been furnished with a copy of the Ouseley-Zeledon treaty, and did not therefore know precisely what terms had been offered by the British plenipotentiary to Nicaragua, though we knew that these were not entirely satisfactory to that Republic, and that much delay had been the consequence. which was accompanied with danger of a failure of the negotiations. Since then we have received from Mr. Runnells, our consul at San Juan del Sur, a copy of the proposed treaty, which was communicated to him by Mr. Zeledon, with the expression of a wish that the Government of the United States would offer any suggestions to that of Nicaragua in relation to the adjustment of the Mosquito question. intimating at the same time that no definitive action should be taken till our views were received. The specific objections to the British project were not, however, made known to us.

Since your departure the British Government has again given us such assurances as to their desire to terminate these Nicaraguan difficulties by a just and satisfactory arrangement with that Republic, and in conformity with the principles which had been approved by this Government, that I indulge the confident expectation that the present effort will be successful and future difficulties be prevented.

You will express to the minister of foreign affairs our gratification at the confidence exhibited toward the United States, and the assurance that our best efforts shall be devoted to a termination of the existing difficulties between Great Britain and Nicaragua upon terms honorable and just to both parties.

You are at liberty also to submit to Mr. Zeledon a copy of such portions of this letter as you may consider expedient, that the views of the United States may be fully made known to the Nicaraguan Government, and you will embrace all favorable opportunity in conversation of impressing upon the minister of foreign affairs the importance of dealing with this whole subject in a spirit of justice and moderation, and of meeting with corresponding feelings the friendly sentiments avowed by the British Government. It is not less desirable that you should cultivate the best relations with the British minister, and should also explain candidly to him the objects of your Government and the conciliatory course you are pursuing.

When it was found difficult for the Government of the United States and that of Great Britain to conclude a satisfactory treaty for the arrangement of the various subjects growing out of the Clayton-Bulwer treaty, the British Government proposed to make separate treaties with the several States of Central America interested in the adjustment of these matters. To this proposition this Government assented, with the understanding that the terms should, in their general purport, be in conformity with the principles which this Government had approved,

and which had been fully discussed between us and the Government of Great Britain.

I have carefully examined the proposed treaty offered by the British minister to Nicaragua, a copy of which accompanies this dispatch, and have compared it with that part of the amended Dallas-Clarendon treaty which relates to Nicaraguan affairs, and I find that, with one or two exceptions, they are substantially the same. The Dallas-Clarendon treaty in some of its Nicaraguan provisions was modified by the Senate, and in this modified form was submitted for the approbation of the British Government. That approbation was withheld, not on account of the changes made by the Senate in this part of the treaty, but on account of provisions contained in the same instrument, which had relation to the Bay Islands. You will find herewith a copy of the Dallas-Clarendon treaty, and you will find in parallel columns the same with the changes proposed by the Senate.

The British Government assured us that none of these changes were so unacceptable to it as to lead it to refuse its notification, and in May, 1857, Lord Napier presented for joint action the project of a treaty containing precisely the arrangements and stipulations as approved by the Senate. We have a right, therefore, to expect that this modified treaty should now be offered to the Nicaraguan Government instead of the treaty in its original form, as appears to have been proposed by Sir William Ouseley. There is no reason to suppose that the Government of Her Britannic Majesty, having signified their acceptance of the Senate modifications to the Dallas-Clarendon treaty, in all that relates to Nicaragua and the Mosquito question, will now interpose any objection to the conclusion of a similar convention between their minister in Central America and the Nicaraguan Government. You will communicate these views unreservedly to the Nicaraguan Government, and should the offer made to it be of the character just indicated, as this Government can not doubt it will be, you will, on the part of the United States, advise that it be promptly accepted. You will, also, make known your course to the British minister in Nicaragua.

Im am, &c.,

LEWIS CASS.

Memorandum for Mr. Dimitry, to accompany general instructions of August 31, 1859.

You are aware that difficulties growing out of the Clayton-Bulwer treaty have arisen between this country and Great Britain.

These concern Central America, and are owing, as the United States contend, to the palpable disregard by Great Britain of the words of that treaty, and the substitution of a construction entirely inconsistent with them, and which would give to Great Britain advantages in that quarter to which this country would not accede. After much delay and prolonged discussion the British Government proposed to adopt substantially the construction we contended for, and to carry out the treaty in that spirit. To this the United States assented, and a conventional arrangement was negotiated for that purpose. The points principally at issue were—

1. The Mosquito protectorate.

2. The establishment of the southwestern boundary of the Belize settlement.

3. The condition of Ruatan and the other Bay Islands.

These questions were satisfactorily settled in a convention which received ratification by the proper authority of both Governments, but the measure ultimately failed in consequence of their disagreement upon another question.

After this the British Government proposed to form treaties with the Central American States interested in these points, and to adjust the various matters with them upon the basis which had been approved by the United States, and which would leave to